AffinHwang Capital upgrades Healthcare sector to Overweight

Affin-Hwang

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KUALA LUMPUR (June 17): AfffinHwang Capital Research has upgraded the Healthcare sector to Overweight (from Neutral) and said that demand for ASEAN healthcare stocks were raising including Malaysian healthcare operators which have rallied 34% year-on-year.

In a note today, the research house said that backed by resilient healthcare demand and continuous capacity expansion, it believes current valuations were justified.

“We expect earnings for IHH Healthcare Bhd and KPJ Healthcare Bhd to grow at a 3-year CAGRs of 23% and 15%, respectively.

“Upgrade KPJ to Buy (from Hold), sector to Overweight (from Neutral) with IHH as top pick,” it said.